That Offer Came Out of Nowhere… Or Did It?
If you’ve ever made an offer on a home that’s been sitting for a while, you may have heard this phrase: “We just got another offer.” And you probably thought — really? Now? You’re not alone. Many buyers feel this way. It sounds fishy. A home sits for 30, 60, even 90 days with no movement. Then the moment you make a move, suddenly someone else does too. It feels too coincidental. So, is the listing agent lying? Did that second offer really just appear our of nowhere? Or is there something else going on?
Human Nature: Why People Want What Others Want
One of the most common dynamics in real estate is this: people get competitive when they feel competition. Buyers will watch a property for weeks, unsure if they want it. They might even schedule multiple showings, send it to friends, and go over the photos ten times.
But they don’t make an offer.
Then someone else does.
Suddenly, that “maybe” becomes “I have to have it.” This is not a real estate phenomenon, it’s human behavior. Whether it’s the last pair of shoes in your size or a one-of-a-kind home, people often hesitate until someone else jumps. That urgency is real. And in real estate, where every property is unique, that instinct kicks in even harder.
The Psychology of Scarcity
There’s also a term for this: perceived scarcity. As soon as something seems limited, its value increases at least emotionally. The longer a home sits, the more people believe they have time. But once another buyer enters the picture, it shifts everything. Even hesitant buyers feel the pressure to act fast, or risk losing it entirely.
I’m reminded of a client that watched a home for nearly a year, unsure about pulling the trigger. When another buyer made an offer, they jumped. They didn’t want to regret losing it, even if they weren’t totally sold before .
But Do Agents Actually Lie?
Let’s address the uncomfortable part: yes, sometimes agents lie. It’s unfortunate. It’s also against the National Association of Realtor Code of Ethics, which requires honesty and full disclosure. But the industry isn’t perfect, and while most agents do things the right way, I’ve personally encountered situations where another agent fabricated an offer.
It’s not common, but it happens. Some agents might bluff in hopes of triggering urgency or creating a bidding war. That kind of behavior gives the entire profession a bad name and it erodes trust between buyers and agents.
So How Do You Protect Yourself?
This is where the escalation clause comes in. An escalation clause allows you to offer a starting price, while also agreeing to increase your offer if there’s another verifiable offer on the table. It’s a way to stay competitive without overpaying or falling for a bluff.
Here’s an example of how it works:
- You offer $475,000 on a home listed at $500,000.
- Your offer includes an escalation clause stating you’ll pay $5,000 over any competing offer, up to $505,000.
- If another buyer submits a verified offer of $490,000, your offer automatically increases to $495,000.
The key word here is verifiable. The listing agent must provide written proof of the other offer. It’s not just hearsay. This protects you from bidding against phantom offers and keeps the process transparent.
Is It Foolproof?
No strategy is perfect. Some sellers may not agree to escalation clauses. Some agents may refuse to provide details of competing offers, citing confidentiality. But in most cases, the clause works, especially when your offer includes the requirement that any competing bid be shared in redacted form for verification.
If the listing agent pushes back, it could be a red flag. You have the right to ask questions and expect honesty.
A Note to Buyers Feeling Discouraged
It’s easy to feel cynical when the process feels like a game. But most agents are doing their job with integrity. And many of these “last-minute” offers are simply the result of timing and buyer psychology. If you love a home, make the offer. If you feel uneasy about how things are being handled, ask for clarity.
If you’re buying or selling and want to work with someone who puts honesty first, I can help. Reach out and I will connect you with a vetted and experienced real estate agent in your area. This will be someone I trust to guide you through the process with professionalism and integrity.
